Are your personal or business credit debts getting out of control?

Are your personal or business credit debts getting out of control?

We offer straight-forward bankruptcy help. At Bankruptcy Ipswich we understand that the very thought of bankruptcy is distressing, and if it becomes a reality it is downright intimidating. We understand that you are truly feeling very overwhelmed, trapped or even like you have no options left, and so we really want to help walk you through the process.

But here’s the thing – you’ve actually endured the toughest part of the process – you have actually taken that initial step towards putting your personal and/or business debts behind you and moving on with your life; you’ve found us.

The next step is to work out if bankruptcy is truly right for you. There is generally a few details you have to know before making that decision so we recommend that you continue browsing across this site, it has plenty of great information, or you can just simply get the phone and phone us on 1300 818 575.

You Can Be 100 % Debt Free!

Can you picture a future free from creditors’ intimidating phone calls and even looking forward to the mail once again? Generally there are a few things you should certainly know before you make that tough choice. First of all, the faster you take action then the more options you are going to have.

5 Questions you must answer long before you declare yourself bankrupt.

There are 5 crucial questions you will need to have an solution to before you declare bankruptcy. If you wish to know exactly what they are, feel free to download our free e-book on the right hand part of the page. This e-book is going to concentrate on these big 5 questions specifically and give you peace of mind that you are doing the best thing.

Get your FREE copy of the Big 5

* We pledge not to barrage you with emails and phone calls when you apply for our free e-book. In fact, we vow to only call you once to see if we will be able to help you further and that’s it.

Your Insolvency Options

Is Going bankrupt my only real choice?

No! There certainly are many options available to you. Here is a graph illustrating the perks and disadvantages of the various debt options available. This diagram is certainly by absolutely no means an extensive resource, but it will make it easy for you to make a well-informed decision.

What is a Personal Insolvency Agreement?

This is an adaptable deal amongst you and your lenders. It is overseen through a trustee who governs the amount of money you will have to pay out and when you have to pay. Once those circumstances have actually been met you are generally then free to start again with a clean slate.

What is a Debt Agreement?

A debt agreement enables a debtor to enter into an understanding with their creditors to settle their unpaid debts without being made bankrupt.

You can’t take part in a Debt Agreement if you have been bankrupt, or if you are already in a debt agreement. Also keep in mind that there are additionally income restrictions, as well as restrictions on property value and unsecured debt value. If you wish to know more please get in touch with us on 1300 818 575.

How do you Choose?

Ultimately it is up to you, but don’t be fooled by certain companies because many of them have a strong bias! The reason you find loads of expensive commercials on the TV in the Ipswich area inviting you to go for one of these alternatives is that there is tons of cash in it for the companies that provide them. You will notice (if you haven’t already) that each and every business has the tendency to give (biased) advice according to the product that they provide. For instance, Debt Agreement Companies ridicule bankruptcy companies as a way of trying to increase their own business. It is very common across the industry, so ensure you don’t get fooled. And nor should this website be the only thing you read! We try to give unbiased advice, but please do your research across a range of sources to find what approach is going to be best for you!

Should I look into a Debt Consolidation Loan?

There are sometimes the very rare conditions where a debt consolidation loan is the most beneficial strategy. Usually the matter with them is that all it is really doing is wrapping 5-15 various debts into one sizable debt. If you are fighting to pay all your different loans now, then why do you think it will be magically simpler to get one massive bill? 9 times out of 10 it is just not going to make it easier. Just to make everything more upsetting you typically will have to pay up front for the ‘ luxury’ of this choice. If you wish to get some clarification or more information on this, then simply contact us on 1300 818 575 or go and download ‘The Big 5’ e-Book.

Bankruptcy and the Family Home

If I declare bankruptcy can I manage to keep my house?

In a lot of cases the answer is yes. If this is a serious issue for you then the best way in order to get the answer is to call us here at Bankruptcy Experts Ipswich on 1300 818 575 and as soon as we have an understanding about your situation we can give you a clear picture over the telephone. Practically everyone is on an emotional level connected to their house; it’s where the kids have grown up, it’s where you enjoy life on a day to day basis. People frequently think it’s an inevitable consequence of bankruptcy and for that reason they pressure themselves to the brink of madness to not give up the family house.

Will the bank let me keep my house even though I’m a bankrupt?

Why might the bank want bankrupt customers? Wouldn’t they like to sell your home and not take the chance? Keep in mind – the bank that has generously offered you the cash for your house is making good money monthly in interest from you, month in and month out. So long as you always keep up to date with your payments then the bank wants you in there at all costs. Having said that it is usually not the bank’s call – if a trustee determines that there is enough equity in your house the trustee will compel you and the bank to sell your home.

What aspects would contribute to losing the house?

Equity! If you are up to date with your payments then the most considerable problem is equity. A trustee has a responsibility to get as much money in order to help cover your bills once you go bankrupt. Equity is the ticket here. If you have $300,000 equity on your property and you have $100,000 worth of debt and no other way to pay off the debt then the trustee sees your equity as a approach to repay your debt therefore they are going to sell your house to pay off the debt and give you whatever money is left from the sale.

How is equity decided?

Most people are not quite sure about what equity is, or how it is calculated– but it is definitely crucial to find out considering that if you understand, it can mean the difference between keeping and losing your home or apartment. There are a few things you should know here. First of all, your gut instinct or suspicion about the true value of the home is undoubtedly far too generous. The majority of people assume their home is worth a lot more than it truly is.

Secondly, when you file for personal bankruptcy the trustee may ask about how you established your value for the house. In some cases they will want more information about your valuation, maybe a rates notice or a real estate agency’s appraisal or a registered valuation. A basic approach would certainly be to look on www.realestate.com.au then click the ‘Sold’ tab on that site and look for recent house sales in your street or neighbourhood. This will help you have some concept of the reality of the marketplace right now. Bear in mind, the appraisal is based upon a quick sale not a slick real estate agent’s advertising campaign. So If you truly want a good idea, I would undoubtedly advise getting a valuer and asking them to give you 2 prices for your home, one as a regular sale, and the other as a ‘quick sale’. This will give you a much better awareness for your home’s worth. Knowing this step is crucial, so get some advice before going ahead, call us on 1300 818 575.

What if my Partner’s name is on the mortgage?

Often when a couple purchase a home one income just isn’t enough to secure the loan, so the bank/lender will have both partners register for the loan. As soon as your home is purchased both names are on the mortgage from the bank and the title deed of the house as joint tenants.

Let’s say Mick and Susie got a house 4 years ago for $400,000 without any deposit so their mortgage was also $400,000. Mick is a builder and needs to go bankrupt but Susie has a good job teaching at a local school and doesn’t have to go bankrupt.

However, the house has not risen in value in the 4 years they have owned it and they also have merely managed to pay interest on the loan in that time so effectively they still have a $400,000 mortgage on a home worth $400,000.

Mick can then declare bankruptcy and provided that they manage to keep paying the mortgage, rates etc. they may continue to keep the home for the 3 years Mick is bankrupt. This step will, in no way, affect Susie’s credit rating or force her to declare bankruptcy as well. There is plenty to think about when it comes to homes and bankruptcy so if you have questions don’t hesitate to phone us about your house on 1300 818 575.

What if My House has too much Equity What could I do?

If your property has a lot of equity and you are still drowning in debt, there are still several choices available to you– it might be complicated, however the important step is to speak to a professional to try and get ahead of it. Actually, this relates to cars or other assets you may have as well. What you can not afford to do is assume that everything will be ok. It is the bankruptcy trustee’s job to sell whatever assets you have when you file for bankruptcy and put that money towards your debts. Getting this wrong will be devastating! Before you take your next step get some advice. We provide a free, initial consultation; just call us today on 1300 818 575.

Bankruptcy and Employment

Will my boss be informed?

Generally there is simply no good reason for your workplace to be advised of your bankruptcy. In situations where you earn over the threshold amounts of income while you are bankrupt and you are required to make an income payment, you organise those payments on your own, it doesn’t go through your job.

Who will hear of my bankruptcy?

There are 4 categories of people that will discover that you are bankrupt.

People that you tell

Your creditors or people you owe money to

People that see your credit file when you’re bankrupt. However, the only way this will take place is if you sign a privacy document for them to gain access to your credit history. You only ever do this when you look for a loan.

You will be shown on the National Insolvency Index on the web somewhere. But this is not too big a problem because it is hard to find and people have to pay to see if somebody is bankrupt on it.

At Bankruptcy Experts Ipswich, we are fully conscious that there is still a stigma attached to bankruptcy. We understand this concern and we can help to ensure that if you declare yourself bankrupt that you don’t have to go to court, get your name in the papers or be publicly made out to be a criminal or some kind of failure. We can help ensure that bankruptcy is fast and easy. In fact, the whole process will only take a few days. It makes it possible for the typical person to get out of debt and on with their lives. For more detailed information about bankruptcy and your job, download ‘The Big 5’ e-book.

Might I lose my job if I declare for bankruptcy?

The response to the question is – yes, but only in some cases. The issue with some jobs isn’t that you aren’t able to do the job any more, it’s more an issue of specialist bodies or associations that view bankruptcy in a dim light and can make it problematic for you.

What we would really recommend is that you do your own research here. It will make a big difference if you investigate this process prior to filing for bankruptcy since that may help you decide. Check if your job is on the diagram below. If it is, we recommend speaking to them personally and explaining your problem. A few organisations won’t have a problem with your bankruptcy provided that it wasn’t accompanied by shady or suspicious behaviour. If you think your employment may be affected by your possible bankruptcy call us here at Bankruptcy Experts Ipswich on 1300 818 575.

Bankruptcy Income Thresholds

What can I make when I’m bankrupt?

There are actually no restrictions on how much you can earn, but if you get over a certain amount, some of the extra can be taken by the trustee to pay off your creditors. This means that you cannot be deciding not to pay your debts and still pull in a 6 figure salary– it simply just wouldn’t be fair to the many people you owe money to. So how much can you make before you start repaying money to your creditors via your trustee?

Bankruptcy and Income

First of all, it is important to know that changes are involving the world of bankruptcy. If you need to know what is happening then focus now. Since March 2016 there have been changes to the Income Threshold amounts. This shows that there are changes to just how much money you can keep when bankrupt. This is your net income after tax and child support (if applicable) are deducted. If you’re in a business when bankrupt then, by all means, it’s also net (after tax) of business spending, which is commonly calculated annually.

Your net income may be governed to take into account things like salary sacrifice and considerable superannuation payments etc. Your net income might also include more unusual costs suffered as a result of being employed. For example, if you are subjected to an uncommonly high amount of travel charges to get to and from your job this can sometimes also be taken into consideration. Your bankruptcy trustee has to ascertain your real net income, based on the bankruptcy rules.

The income threshold numbers are also per person and are set by the Government each and every March and September to permit the movement in the cost of living.

What can my partner make if I go bankrupt?

There really is no limit to what your spouse/partner can earn. There are a few ramifications that must be thought about in some circumstances, but most of the time your partner is an entirely different legal entity and will not be influenced financially when you declare bankruptcy. Just as a word of warning – this could alter if you have joint loans together, so take care about the implications of that. If you are uncertain just call us on 1300 818 575.

Who is thought of as a dependent?

This may possibly be anybody, of any age, that resides with you and earns no more than $3,343 per year. If, in the case you have a child or children that you give child support for and they don’t live with you full time, then you can not declare these particular children as dependents.

Suppose my spouse or partner and I both have to go bankrupt?

If a couple need to both declare bankruptcy and you have no dependents then you can each earn $1,048.25 net. A practical way to understand it is the same income rules apply for each person individually.

Self Employment & Bankruptcy

Can I forfeit my small business if I go bankrupt?

The simple answer is no, you really don’t have to but you do need to get the correct guidance. Business insolvency laws are very entailed and you need to tread diligently if you wish to continue to be self-employed.

You may actually recognise that you can no longer be the director of a Pty Ltd Company if you are bankrupt. Even so, that does not inevitably mean you can’t run your very own business and choose staff etc

Suppose I have both Business and Personal Debts?

If you are a business owner and you have a combination of personal and business debts then it is really possible to have most, or even all, of the debts eliminated with bankruptcy. Bear in mind this is a complicated process and needs special attention. The fact is, personal bankruptcy won’t automatically imply business bankruptcy as well.

Whether you operate your business as a Sole Trader, Partnership, Company or Trust we can really help guide you with your options. Feel free to contact us on 1300 818 575 for a no obligation FREE consultation.

Should I put my business into liquidation?

Among the main reasons you may wish to think about liquidation as opposed to bankruptcy is due to the fact that if you liquidate your company, it doesn’t inevitably mean you have to go bankrupt. In Australia, businesses that become insolvent have a few choices, just like liquidation, voluntary administration etc. If you need to know more call us on 1300 818 575.

What effect will bankruptcy have on my business?

There are limits for business owners that are bankrupt. For example, as a bankrupt company owner you could be in your very own business as a sole trader only. For a number of business owners, bankruptcy can have an effect on their ability to operate the business because of the licensing concerns. For instance, a builder with a builder’s license can not continue to use that license for the 3 years he or she is simply bankrupt.

There are really some other implications for small business owners whilst bankrupt that should be considered. If you have to know more about this just feel free to call us for a no obligation, free consultation on 1300 818 575.

Isn’t it illegal to run a related business after bankruptcy?

It could be. There are factors to consider when and if you declare bankruptcy as a small business owner. You can not run up heaps of debt in your company, then go bankrupt then open the doors the next day like nothing has happened. There are laws in effect to avoid these ‘Phoenix companies’ rising out of the ashes of an old company. Don’t get too worried about what you can and can’t do as a company owner; just get the right advice by calling Bankruptcy Experts Ipswich today on 1300 818 575.